Market Developments

Nordstrom closes full-line store, continues Rack push

Orlando--Nordstrom Inc. announced Thursday that it will close its underperforming full-line store in Orlando when the lease runs out next month, as the company’s focus remains on its Rack off-price division.

Initially opened in 2002, the store will continue to operate through Aug. 16. Its closure will impact about 190 non-seasonal employees, according to Nordstrom.

“Our lease for the store is up. To make a long-term commitment to this community and renew our lease, we would need to make a significant investment in this store so that we’re not offering our customers a substandard experience,” said President Jamie Nordstrom. “Despite our team’s best efforts, the store’s performance doesn’t support making that kind of investment. We take responsibility for not meeting our own expectations to continue on here.”

The company will continue to serve the customers in Orlando through its Nordstrom Rack at Millenia Crossing, one of 10 in the state, as well as the company’s other eight full-line stores across Florida.

The company, like other high-end and mid-tier retailers right now, will continue to place emphasis on its off-price division. Nordstrom plans to open a total of 27 new Rack stores in 2014, as compared with only three full-line stores.

In recent months, Nordstrom announced the opening of a number of new Rack stores across the country, including expanding into Anchorage, Alaska for the first time, as well as launching new stores in Orem, Utah; Bakersfield, Redlands, and Emeryville, Calif.; Buffalo, N.Y., and Albuquerque.

It also will open a new full-line store at St. Johns Town Center in Jacksonville, Fla. and two new Rack stores in West Palm Beach and Lake Brandon, Fla. in October.